Amazon.com beats 3Q estimates, sees lower 4Q losses

January 2, 20024:43 PM PST

Amazon.com (Nasdaq: AMZN) beat analyst estimates in the third quarter and said it expects losses to drop as a percentage of sales in the fourth quarter.

After market close Tuesday, the online retailer reported a third quarter pro forma operating loss of $68 million, or 25 cents per share, or about 11 percent of sales. First Call's survey of 29 analysts predicted a loss of 33 cents per share for the quarter ended Sept. 30.

The company said it now sees a fourth quarter pro forma operating loss of 5 to 8 percent of sales, which are expected to range between $950 million and $1.05 billion.

Based on those projections and 353.9 million shares outstanding at the end of the third quarter, Amazon.com expects a fourth quarter loss between $47.5 million and $84 million, or 13 to 23 cents per share.

First Call consensus currently predicts a loss of 27 cents per share for Amazon.com's December quarter.

"We expect this will be our best holiday season ever," CEO Jeff Bezos said.

Amazon.com also predicted about $4 billion in revenue for 2001, with operating loss dropping below 5 percent of sales.

Cash and marketable securities should exceed $1 billion at the end of the fourth quarter, and $700 million at the end of 2001, the company said.

Including amortization and other special charges, Amazon.com in the third quarter lost $240.5 million, or 68 cents per share.

Amazon.com's books, DVD and video businesses in the United States generated an operating profit of $25 million, or 6.2 percent of revenue from those units.

Electronics is now the company's second-largest U.S. store, behind books and ahead of music, executives said. Amazon.com's "early stage" businesses are currently on track to generate $600 million in annual revenue, CEO Bezos told analysts.